PowerPicks Pull Ahead in September

The portfolio of S&P analysts' top selections topped the S&P 500 for the month, led by stocks like ValueClick and TXU

By Ken Shea, Steve Biggar, and Robert Gold

The -- representing S&P analysts' top picks for the year -- solidly outperformed its benchmark, the S&P 500-stock index, in September. For the month, the portfolio returned 1.36%, vs. the S&P 500's gain of 0.81%, both including dividends.

The portfolio's top gainers on the month included ValueClick (VCLK ), up 18%; TXU (TXU ), up 16%; Burlington Northern Santa Fe (BNI ), up 13%; Devon Energy (DVN ), up 13%; and Qualcomm (QCOM ), also up 13%.

The members of the portfolio that fared the worst in September included Invitrogen (IVGN ), down 11%; Pacific Sunwear (PSUN ), down 10%; Commerce Bancorp (CBH ), down 9%; Waters (WAT ), down 9%; and Best Buy (BBY ), also down 9%.

Year-to-date through Sept. 30, the portfolio has generated total return of 9.4%, vs. a 2.8% return for the "500".

About the S&P PowerPicks 2005 Portfolio

The portfolio represents the collective "best ideas" of the Standard & Poor's equity research staff.

Each of the most senior 40 industry analysts on S&P's equity research staff has chosen one of the stocks they follow as the best-positioned for superior growth. The S&P PowerPicks 2005 Portfolio is diversified across all the 10 S&P economic sectors that make up the S&P 500 index.

The portfolio is a "frozen" one, meaning it will undergo no changes throughout the entire year. Its objective is to exceed the total return (capital appreciation plus dividends paid) generated by the S&P 500 index during the next 12 months.

  THE S&P POWERPICKS 2005 PORTFOLIO
Ticker Company Mkt. Cap ($ Mln) S&P Earns & Divd Rank S&P Index STARS Dividend Yield (%) Subindustry
Consumer Discretionary              
BBY Best Buy 18,290 B 500 5 0.8 Computer & Electronics Retail
GTRC Guitar Center 1,225 NR 600 5 - Specialty Stores
HET Harrah's Entertainment 6,881 B 500 5 2.1 Casinos & Gaming
LQI La Quinta 1,513 C None 5 - Hotels Resorts & Cruise Lines
NWS News Corp. 52,569 NR None 5 - Movies & Entertainment
PSUN Pacific Sunwear of California 1,647 B+ 400 5 - Apparel Retail
Consumer Staples              
BF.B Brown-Forman 5,959 A 500 5 1.8 Distillers & Vintners
CHTT Chattem 717 B None 5 - Personal Products
PEP PepsiCo 84,072 A+ 500 5 1.8 Soft Drinks
WAG Walgreen Co. 39,019 A+ 500 5 0.6 Drug Retail
Energy              
CVX ChevronTexaco 115,676 B+ 500 5 2.9 Integrated Oil & Gas
DVN Devon Energy 20,131 B+ 500 5 0.5 Oil & Gas Exploration & Production
NBR Nabors Industries 7,775 B 500 5 - Oil & Gas Drilling
Financials              
ALL Allstate 34,654 B+ 500 5 2.2 Property & Casualty Insurance
C Citigroup 232,241 A+ 500 5 3.6 Other Diversified Financial Services
CBH Commerce Bancorp 4,956 A+ 400 5 1.2 Regional Banks
GS Goldman Sachs Group 50,723 NR 500 5 1.0 Investment Banking & Brokerage
NDE IndyMac Bancorp 2,181 B+ 400 5 4.2 Thrifts & Mortgage Finance
SPG Simon Property Group 13,770 B+ 500 5 4.2 Real Estate Investment Trusts
Health Care              
COO Cooper Cos. 2,275 B 600 5 0.1 Health Care Supplies
IVGN Invitrogen 3,099 B- 400 5 - Biotechnology
KCI Kinetic Concepts 4,339 NR None 5 - Health Care Equipment
PDLI Protein Design Labs 1,731 C 400 5 - Biotechnology
WAT Waters Corp 5,638 B 500 5 - Health Care Equipment
WLP WellPoint 14,063 NR 500 5 - Managed Health Care
Industrials              
ASD American Standard 8,353 B- 500 5 - Building Products
BNI Burlington Northern Santa Fe 16,932 A- 500 5 1.5 Railroads
FDX FedEx 28,563 B+ 500 5 0.3 Air Freight & Logistics
IR Ingersoll-Rand 12,816 A 500 5 1.3 Industrial Machinery
KDN Kaydon Corp 916 A- 600 5 1.5 Industrial Machinery
Information Technology              
ADP Automatic Data Processing 26,523 A+ 500 5 1.2 Data Processing & Outsourced Services
DELL Dell Inc. 101,163 B+ 500 5 - Computer Hardware
EMC EMC Corp 32,158 B 500 5 - Computer Storage & Peripherals
MXIM Maxim Integrated Products 13,322 B+ 500 5 1.0 Semiconductors
MSFT Microsoft 291,467 B+ 500 5 1.2 Systems Software
QCOM Qualcomm 68,219 B 500 5 0.7 Communications Equipment
VCLK ValueClick 1,046 NR None 5 - Internet Software & Services
Materials              
DOW Dow Chemical 47,592 B 500 5 2.7 Diversified Chemicals
Telecommunications Services              
CTL CenturyTel 4,430 A 500 5 0.7 Integrated Telecommunication Services
Utilities              
TXU TXU Corp. 18,293 B 500 5 0.8 Electric Utilities

Shea is director of Global Equity Research, Biggar is director of U.S. Equity Research and Gold is senior portfolio group analyst, for Standard & Poor's Equity Research

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